The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-10-27

dutnorizeu to Collect occupation taxes
from national banks; second, that the
provisions of our general occupation tar
law, above quoted, should not be con-
strued to include such banks. National
banks are regulated and controlled by
federal legislation, except in so far as
such legislation confers upon states the
authority TO tax the shares of stock OF
such banks article 5219 United States
revised statutes).
Said article, by authority of which
section "a chapter III, acts of 1855,
was enacted by our state legislature,
makes no provision for the collection of
occupation taxes from national banks,
and, so far as l have been able to gscer
tain, there is no federal enactment making
such provision.
In the matter of taxation of national
banks, state cannot exceed the authority
expressly conferred upon it by congress-.
Such power not being conferred
can not be exercised by the state.
In the 59th Georgia Report, GAS, Mayor
and City Council of Macon VS.. First Ma
tlonal Bank of Macon, the court saws:
"The city authorities of Macon levied a
tax upon the business of the First National
bank, operating therein under the act of
congress; the bank applied for an iniunc-
ton, the chancellor granted it, and the
city excepted"
We think that the chancellor was right.
Whilst the property owned by the bank
may be taxed by state authority, and the
shares owned by the stockholders may
also be taxed, the business of the bank,
Its right to operate and do banking bust
ness, cannot be taxed by states; and, if
not, of course it cannot be by any munich
pallty which derives its taxing power
from the state. The distinction between
the right to tax property and that to tax
business in cases working under federal
authority is well settled, we think, by the
supreme court of the United States
Wheaton, 430; 8 Wallace, 1853; IS iB, s.,
III, 36, 37--there is nothing decided in any
subsequent case which oontroverts this
distinction.
AS this is clearly an effort to
tax the business of this bank,
it is illegal, and the chancellor did right
to grant the injunction. See revised
statutes U. S., sections 521-5219. judy
ment affirmed"
The occupation tax law of this state,
under which it is claimed that national
backs are subject to occupation taxes,
was enacted long subsequent to the estab-
llshment by supreme court of the United
states, and by state courts, of the prin-
ciple that states have no authority to col
lect occupation taxes from national
banks; therefore, must conclude that in
the enactment of said occupation tax law
the legislature did not contemplate that
national banks should be included therein;
and further, that said occupation tax law
refers entirely to such banks as are
chartered by the laws of this state, and TO
such other banks as are subject wholly to
state legislation. Such banks are clearly
subject to occupation taxes, from which
they cannot be relieved except by amend
ment of the law.
If the statute expressly provide in
substance that national banks should be
required to pay occupation taxes, l
would certainly endeavor to strictly
enforce the same, until otherwise directed
by the legislature or the courts But
there being no such statute do not feel
authorized, in view of the reasons above
given, and the authorities above cited,
to construe the present statute to include
national banks; therefore, in several cases,
referred to this department for solution,
L Instructed tax collectors that national
banks in this state are not subj ect to occu-
patton taxes, bit that hanks-other than
national banks-are clearly SO subject.
/ have the honor to be,
Very respectfully,
JNo. d. MCCALL, Comptroller.
Mr.. Costa, clerk in the comptroller's
office, furnishes the following additional
fOotipgs of state assessments:
Land, III, 40 S63 acres valued at S29D, 4OG 1872
Clty ana wn lots. ACKNOWLEDGEMENTS. 10,077,50
Railroad property. Observation-Disclosures. 46,15S,456
telegraph property ................. 555 S93 |
Land certificates. ................... 2O5, 45S |
Steamboats, and shipping. ............. Ml,54I |
Carriages, wagons, etc. ............ 6534 SIG |
Manufacturing tools ................... 70O6,2S0 |
Materials snd manufactured articles 692,67O |
Goods, wares, etc ACKNOWLEDGEMENT. 27,Ss2,17O
Money ACKNOWLEDGEMENTS. 11,n0,l5S
Mis- enaneous ACKNOWLEDGEMENTS. 32GO709O
j. 81, .cA